How much interest will he earn after-tax for the second

Assignment Help Accounting Basics

Reference no: EM13598768

Matt recently deposited $25,750 in a savings account paying a guaranteed interest rate of 4.80 percent for the next 10 years

A. If Matt expects his marginal tax rate to be 26 percent for the next 10 years, how much interest will he earn after-tax for the first year of his investment?
After-Tax interest $

B. How much interest will he earn after-tax for the second year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns?
After-tax interest $

C. How much will he have in the account after four years?
Balance $

D. How much will he have in the account after seven years?
Balance $

Reference no: EM13598768

Questions Cloud

An accounting firm provides consulting and tax planning : an accounting firm provides consulting and tax planning services. a recent analysis found that 55 of the firms billable

Ken sold a rental property for 858000 he received 182000 in : ken sold a rental property for 858000. he received 182000 in the current year and 169000 each year for the next four

Calculate the cash dividend per share amount to be paid : assume that you own 3000 shares of blueco inc.s common stock and that you currently receive cash dividends of 0.42 per

Given that she will not actually receive any interest : at the beginning of her current tax year angela purchased a zero-coupon corporate bond at original issue for 46000 with

How much interest will he earn after-tax for the second : matt recently deposited 25750 in a savings account paying a guaranteed interest rate of 4.80 percent for the next 10

Bryntesson corporation bases its budgets on the activity : bryntesson corporation bases its budgets on the activity measure customers served. during september the company planned

Rafael received 80000 of cash and a vehicle worth 10000 : what is rafaels amount realized on the sale in each of the following alternative scenarios? a. rafael received 80000

What would be the allowable organizational expenditures : nicole organized a new corporation. the corporation began business on april 1 of year 1. she made the following

The inventory of finished goods at the end of each month : a sales budget is given below for one of the products manufactured by the key co.sales budget in unitsjanuary

User Account

All Pages